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Debt | 9 Months Ended
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Sep. 30, 2015
Debt Disclosure [Abstract] |
Debt | Debt The following table sets forth information regarding the Company’s debt as of September 30, 2015 (dollars in thousands):
Property |  | Principal Balance |  | Interest Rate |  | Maturity Date
Orlando Airport Marriott (1) |  | $ | 55,254 |  |  | 5.68% |  | January 2016
Chicago Marriott Downtown Magnificent Mile |  | 202,604 |  |  | 5.975% |  | April 2016
Courtyard Manhattan / Fifth Avenue |  | 48,480 |  |  | 6.48% |  | June 2016
Lexington Hotel New York |  | 170,368 |  |  | LIBOR + 2.25% (2.447% at September 30, 2015) |  | October 2017 (2)
Marriott Salt Lake City Downtown |  | 60,369 |  |  | 4.25% |  | November 2020
Hilton Minneapolis |  | 91,231 |  |  | 5.464% |  | May 2021
Westin Washington D.C. City Center |  | 69,250 |  |  | 3.99% |  | January 2023
The Lodge at Sonoma, a Renaissance Resort & Spa |  | 29,679 |  |  | 3.96% |  | April 2023
Westin San Diego |  | 67,963 |  |  | 3.94% |  | April 2023
Courtyard Manhattan / Midtown East |  | 86,000 |  |  | 4.40% |  | August 2024
Renaissance Worthington |  | 85,000 |  |  | 3.66% |  | May 2025
JW Marriott Denver at Cherry Creek |  | 65,000 |  |  | 4.33% |  | July 2025
Total mortgage debt |  | 1,031,198 |  |  |  |  |
Senior unsecured credit facility |  | 25,000 |  |  | LIBOR + 1.75% (1.94% at September 30, 2015) |  | January 2017 (3)
Total debt |  | $ | 1,056,198 |  |  |  |  |
Weighted-Average Interest Rate |  |  |  | 4.50% |  |
_______________________
(1) | The loan was prepaid on October 9, 2015, three months prior to the scheduled maturity date.
(2) | The loan may be extended for two additional one-year terms subject to the satisfaction of certain conditions and the payment of an extension fee.
(3) | The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
Mortgage Debt We have incurred limited recourse, property specific mortgage debt secured by certain of our hotels. In the event of default, the lender may only foreclose on the secured assets; however, in the event of fraud, misapplication of funds or other customary recourse provisions, the lender may seek payment from us. As of September 30, 2015, 12 of our 29 hotels were secured by mortgage debt. Our mortgage debt contains certain property specific covenants and restrictions, including minimum debt service coverage ratios that trigger “cash trap” provisions as well as restrictions on incurring additional debt without lender consent. As of September 30, 2015, we are in compliance with the financial covenants of our mortgage debt. On April 10, 2015, we repaid the $52.6 million mortgage loan secured by the Renaissance Worthington three months prior to the scheduled maturity date. On April 14, 2015, we entered into a new $85.0 million mortgage loan secured by the Renaissance Worthington. The new loan matures in 2025 and bears interest at a fixed rate of 3.66%. The new loan is interest-only for the first two years, after which principal will amortize on a 30-year schedule. On May 11, 2015, we repaid the mortgage loan secured by the Frenchman's Reef & Morning Star Beach Resort three months prior to the scheduled maturity date. The loan had an outstanding principal balance of $56.2 million and incurred interest at a fixed rate of 5.44%. On July 1, 2015, we repaid the $38.1 million mortgage loan secured by the JW Marriott Denver at Cherry Creek and entered into a new $65.0 million mortgage loan. The new loan matures in 2025 and bears interest at a fixed rate of 4.33%. The new loan is interest-only for the first year, after which principal will amortize on a 30-year schedule. On October 9, 2015, we repaid the mortgage loan secured by the Orlando Airport Marriott three months prior to the scheduled maturity date. The loan had an outstanding principal balance of $55.3 million and incurred interest at a fixed rate of 5.68%. On October 27, 2015, we entered into a new $205.0 million mortgage loan secured by the Westin Boston Waterfront Hotel. The new loan matures in 2025, bears interest at a fixed interest rate of 4.36% and will amortize on a 30-year schedule. Senior Unsecured Credit Facility We are party to a $200 million senior unsecured credit facility, which expires in January 2017. The maturity date of the facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain other customary conditions. We also have the right to increase the amount of the facility up to $400 million with lender approval. Interest is paid on the periodic advances under the facility at varying rates, based upon LIBOR, plus an agreed upon additional margin amount. The applicable margin is based upon the Company’s ratio of net indebtedness to EBITDA, as follows:
Ratio of Net Indebtedness to EBITDA |  | Applicable Margin
Less than 4.00 to 1.00 |  | 1.75 | %
Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00 |  | 1.90 | %
Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00 |  | 2.10 | %
Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00 |  | 2.20 | %
Greater than or equal to 6.00 to 1.00 but less than 6.50 to 1.00 |  | 2.50 | %
Greater than or equal to 6.50 to 1.00 |  | 2.75 | %
In addition to the interest payable on amounts outstanding under the facility, we are required to pay an amount equal to 0.35% of the unused portion of the facility if the unused portion of the facility is greater than 50% or 0.25% if the unused portion of the facility is less than or equal to 50%. The facility contains various corporate financial covenants. A summary of the most restrictive covenants is as follows:
|  |  | Actual at
| Covenant |  | September 30, 2015
Maximum leverage ratio (1) | 60% |  | 32.9%
Minimum fixed charge coverage ratio (2) | 1.50x |  | 3.5x
Minimum tangible net worth (3) | $1.91 billion |  | $2.52 billion
Secured recourse indebtedness | Less than 45% of Total Asset Value |  | 32.1%
_____________________________
(1) | Leverage ratio is total indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as a) total cash and cash equivalents and b) the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate.
(2) | Fixed charge coverage ratio is Adjusted EBITDA, defined in the credit agreement as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the credit agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period.
(3) | Tangible net worth, as defined in the credit agreement, is (i) total gross book value of all assets, exclusive of depreciation and amortization, less intangible assets, total indebtedness, and all other liabilities, plus (ii) 75% of net proceeds from future equity issuances.
The facility requires us to maintain a specific pool of unencumbered borrowing base properties. The unencumbered borrowing base assets must include a minimum of five properties with an unencumbered borrowing base value, as defined in the credit agreement, of not less than $250 million. As of September 30, 2015, the unencumbered borrowing base included five properties with a borrowing base value of $319 million. As of September 30, 2015, we had $25.0 million outstanding under the facility and the Company's ratio of net indebtedness to EBITDA was 3.55 x. Accordingly, interest on our current and future borrowings, if any, under the facility will be based on LIBOR plus 175 basis points for the next quarter. We incurred interest and unused credit facility fees on the facility of $0.4 million and $0.2 million for the three months ended September 30, 2015 and 2014, respectively. We incurred interest and unused credit facility fees on the facility of $0.8 million and $0.6 million for the nine months ended September 30, 2015 and 2014, respectively. Subsequent to September 30, 2015, we borrowed an incremental $60.0 million on the facility to fund the prepayment of the mortgage loan secured by the Orlando Airport Marriott. Following the closing of the mortgage loan secured by the Westin Boston Waterfront Hotel, we repaid the $85.0 million outstanding under the facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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